- Working with the Jordanian government to open up British food exports worth £32 million, by changing labelling rules that will help our producers to increase sales to a country that imports £2.5bn worth of food annually
- Unlocking access to finance in Hong Kong to enable UK education providers to build new schools there from early next year
- Cooperating with Indian counterparts to enable more investment in India’s £4bn insurance market- 74% foreign ownership now allowed, up from 49% - a sector in which the UK has world-class strengths
- In Colombia, helping British asset managers enter a green investment market worth £835m per year
- In Bulgaria, supporting UK business to access products to develop cutting-edge technology that will extend the life of vaccines, helping overcome logistical and distribution challenges from the pandemic.
November 2021 / United Kingdom
The Finance Bill 2021-22 was published today (4 November 2021), legislating for tax changes announced by the Chancellor at last week’s Budget
- The Finance Bill 2021-22 was published today legislating for tax changes announced at the Budget
- The Bill supports the Budget which will deliver a stronger economy for the British people through driving growth, securing public finances and levelling up employment opportunities
- Changes taking effect also crack down on tax avoidance and deliver a simpler tax system
It will extend tax reliefs for museums, galleries, theatres and orchestras, implement the new residential property developer tax, and introduce reforms to tonnage tax, among other changes.
Many changes will come into effect for the next tax year starting in April 2022.
Financial Secretary to the Treasury Lucy Frazer said:
This year’s Finance Bill will help us to continue on our mission to deliver a stronger economy for the British people – through stronger growth, jobs and public finances.
The Finance Bill 2021-22 brings forward a number of tax measures from last week’s Budget. The Bill helps support a stronger economy for the British people by helping to deliver stronger public finances, tackling tax avoidance and evasion, and contributing towards a simpler and more sustainable tax system.
It does this through:
- Reforming the UK’s Tonnage Tax regime to bring more shipping firms to the UK
- Extending tax reliefs for museums, galleries, theatres and orchestras to 31 March 2024
- Extending the £1 million Annual Investment Allowance cap by a further 15 months to 31 March 2023, to bring forward investment
- Implementing the 4% Residential Property Developer Tax on the largest most-profitable residential developers to support building safety remediation
- Simplifying Basis Period Rules to make it easier for the self-employed and small businesses to claim tax reliefs they are entitled to but often do not take advantage of due to confusing current rules. This, as the OBR concludes, has no effect on the amount of profits taxed.
- Clamping down on promoters of tax avoidance by reducing the scope for promoters to market tax avoidance schemes, disrupting their activities and supporting people more to steer clear of and leave tax avoidance arrangements
- Increasing the Normal Minimum Pension Age from 55 to 57, effective from 6 April 2028
The Overview of Tax Legislation and Rates (OOTLAR) document, published at Autumn Budget 2021, confirmed the measures going forward in the Bill.
The Finance Bill 2021-22 had its First Reading in Parliament on Tuesday 2 November and will now follow the normal passage through Parliament.
- Read the full contents of the Finance Bill 2021-22
- Also read the Bill’s explanatory notes which includes details of the measures including on their implementation dates
COVID-19 Pandemic: United Kingdom Updates Policy Towards Supporting Affected Taxpayers and the Economy
On 9 November 2021, HM Revenue and Customs (HMRC) updated its tax policy to reflect its latest position on support schemes and policy changes as a response to the COVID-19 pandemic, as well as its principles on tax collection, benefits payments, compliance checks and debt activity. Further details are summarized below.
Firstly, in its attempt to guarantee that funds from support schemes, including the Coronavirus Job Retention Scheme and the Self-Employment Income Support Scheme, reach those in need, while abuse, fraudulent behaviour and mistakes are minimized, HMRC plans to commit more than 1,200 people to recovering money paid out to incorrect and fraudulent claims. Existing measures and practices will be reviewed and will either be retained or removed. Also, HMRC will open more than 30,000 one-to-one enquiries into COVID-19 support scheme claims. These actions are expected to allow the Taxpayer Protection Taskforce to recover GBP 1 billion over the next 2 years.
Secondly, HMRC will strive to make sure taxpayers are supported, while the tax system is protected. This will include recognizing the needs and challenges that businesses and individuals face, providing certainty, interacting with fairness and professionalism with the customers and using administrative arrangements to deliver long-term sustainable solutions.
Thirdly, HMRC will continue to conduct compliance checks informed by taxpayers' individual circumstances, particularly if they are still severely affected by the COVID-19 pandemic. This means that people will not be penalized for any delay as a result of the COVID-19 pandemic, although interest will still apply on any unpaid tax. In addition, taxpayers should prepare now to meet their future tax obligations.
Lastly, HMRC will continue to provide support to taxpayers with tax debts and those who are concerned about their ability to meet their tax obligations, by offering them affordable and sustainable payment plans called time-to-pay arrangements. Nevertheless, HMRC is restarting its debt collection work, including insolvency actions against companies, which are now permitted after the moratorium on company winding-up petitions has been partly lifted.